(adds CEO quote, NextDecade comment request; background on FID schedule and recent contracts for Rio Grande LNG)
By America Hernandez
PARIS, Sept 9 – TotalEnergies CEO Patrick Pouyanne said that U.S. liquefied natural gas developer NextDecade, in which Total holds a stake, will announce a final investment decision on an additional liquefaction unit at its Rio Grande LNG project later on Tuesday, in an interview with CNBC.
The comments were made on the sidelines of the GasTech conference in Milan on Tuesday.
“For a company like TotalEnergies, the U.S. has plenty of energy – we invest in the Gulf of Mexico with Chevron, we continue to explore gas and LNG, and we will announce a new train for Rio Grande LNG; the FID will be announced today,” Pouyanne said.
Pouyanne added that he would meet with the U.S. energy and interior secretaries on Tuesday to discuss the French energy company’s investments in the country.
NextDecade did not immediately respond to a request for comment outside of U.S. business hours.
The Texas-based LNG producer has previously said it was targeting mid-September for a FID on a fourth and fifth train, or liquefaction unit, at Rio Grande.
LNG developers typically reach an FID on projects once they have secured enough supply deals to obtain the necessary financing for construction.
On Monday, NextDecade announced it had fully commercialized Train 5, with the signing of a 20-year supply agreement with ConocoPhillips.
TotalEnergies, the largest offtaker of U.S. LNG, has a 17.5% stake in NextDecade and a 16.7% interest in Phase 1 of the Rio Grande project, which includes the first three trains.
In April, it signed a 20-year deal to purchase 1.5 million tons per annum (mtpa) from Train 4, although Reuters reported last month Total had declined its option to invest in Train 5.
(Reporting by America Hernandez in Paris, Editing by Louise Heavens)